KALYANI FORGE LIMITED

Kalyani Forge Limited reported strong Q1 FY27 results with PAT of ₹4.48 crore, up 218% YoY, and EBITDA margin at 16.2%, a record high. Revenue reached ₹67.07 crore, up 3.9% YoY and 13.2% QoQ, driven by market demand and operational efficiency gains. The company highlighted margin expansion from operating leverage, shop floor efficiency improvements, and cost-saving initiatives like the Vriddhi Council, which have achieved ₹19.1 crore in savings against a ₹50 crore annual target. Business mix optimization saw a 31% YoY growth in OEM revenues to ₹40.7 crore, with a focus on high-volume segments like passenger cars and trucks. Capex for FY27 is ₹30 crore, allocated to expanding driveline and axle capacities, with 60% directed toward future growth areas. The company noted a 248-day cash conversion cycle improvement and a debt-to-EBITDA ratio of 2.51, below target. New orders for wheel hub components are in validation, with potential annual revenue of ₹20 crore. Management emphasized strategic focus on OEMs, cost discipline, and long-term growth through capacity expansion and margin stability.

The document highlights strong financial performance, margin expansion, and strategic initiatives with clear progress toward goals.